Bahrain-based alternative investment manager Investcorp is reportedly in talks with China’s sovereign wealth fund about an US$800 million investment.
The investment, from China Investment Corp (CIC), would be allocated to Investcorp’s pre-IPO fund.
The development, first reported by Bloomberg, is the result of both regions, China and the Middle East, looking to develop closer ties.
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In November, Investcorp announced plans to launch its first private equity fund in the Chinese currency and to apply for the relevant licence to raise capital in China.
Meanwhile, CIC’s investment with Investcorp is part of a broader strategy to develop stronger ties with Mena-based firms.
It also coincides with a roundtable hosted in Dubai by the Dubai Financial Services Authority and Hong Kong’s Securities and Futures Commission that discussed how Hong Kong-domiciled funds could be distributed throughout the UAE.